23 june 2011

First Deputy Prime Minister Viktor Zubkov attends a congress of the Russian Agrarian Movement in Rostov-on-Don

Participants:

Mr Zubkov’s opening remarks:

Today, we are going to summarise the results of the Russian farming sector’s operation in the last few years and set goals for the future.

I would like to begin by expressing my gratitude and appreciation. It was your hard and dedicated work that ensured the sustainable development of Russian agriculture even during the severe drought last year. Russian agriculture has weathered the crisis, proving its strength and resilience. We eventually prevented a sharp rise in food prices and maintained stability on the food market.

Today you will report on your work and achievements, share your problems, and we will work together to find possible solutions.

Let me emphasise that Russian agriculture has shown promising results in all key areas in the years since 2006. Some of them are developing more rapidly than ever before. Overall, the output of agricultural products grew by 15.3%. The rapid development of livestock farming has resulted in 84% growth in poultry production and a 43% rise in pork production. The output of fish farms grew by 11%. Food imports dropped by as much as 32%. More than 250 animal husbandry facilities have been built from the ground up or modernised over the past two years. As many as 164 investment projects are being implemented in pig husbandry alone; pork production is to grow by 2 million tonnes once they reach their target capacity.

These results have been achieved though our cooperation. The government has prioritised goals, drafted and introduced effective management policies and state support for this sector. These measures, in conjunction with your dedicated efforts, have created an environment for sustainable growth in food production.

Nevertheless, I believe that we still have a colossal degree of untapped potential through which we can further increase output. Russia has natural competitive advantages in agriculture. We have at our disposal one-tenth of global farmland, one-fourth of the world’s fresh water resources, and vast mineral fertiliser reserves. We have all the basic resources for producing massive amounts of high-quality foodstuffs with a high level of safety, which is of special importance today.

We will discuss in detail our priorities and goals for the next two years and up to 2020. Our main priorities should be to boost investment and create more jobs in agriculture, develop social infrastructure, and gradually reduce food imports.

Our goal is to fully meet domestic demand and provide Russians with high-quality foodstuffs at affordable prices. Therefore, we will have to strengthen our positions on the markets for staple products such as grain, potatoes, vegetables, meat, and dairy. To achieve these results, we must accelerate the modernisation of agricultural infrastructure and introduce innovative methods and technology.

These ambitious goals can only be attained through close cooperation and support of the regional authorities. Those present here today represent all of Russia’s farming regions; the regional governors are present, too.

I believe that we have already built a solid foundation for steady progress. We have completed this spring’s planting and sowing. These works have been completed across the country. Grain has been sowed on an area of 49 million hectares, nearly 2 million hectares more than last year. Therefore, we expect to harvest some 85 million tonnes of grain and export 15 million tonnes. As you know, the government decided to lift the grain export ban on July 1.

Russia is returning to the international grain market to stay, and we intend to become one of the world’s leading grain exporters. We will discuss that prospect in more detail during this congress.

Let me repeat that Russian agriculture is one of our most attractive non-financial sectors for investment today. This represents a guarantee that more jobs will be created and that more young professionals will join the industry.

It is the government’s position of principle to go on supporting agriculture financially. During last year’s drought, Prime Minister Vladimir Putin absolutely supported all the additional financial and other support measures proposed in regard to agriculture. We will continue insisting, together, on substantial government support for Russian agribusinesses. The federal government alone provided nearly 500 billion roubles to support agriculture over the past five years. This was supplemented by contributions from regional governments, banks, and development institutions, mainly the Russian Agricultural Bank and Rosagroleasing. We have taken several decisive measures to make these two companies work more effectively. They are viewed as reliable supporters of farmers and small and mid-sized agribusinesses. The government will support them whenever necessary.

I have already mentioned one priority goal – that of providing Russia with high-quality and safe food. Our other priority is to gain a foothold on the global food market. Russia is capable of doing so, considering its competitive edge. All we have to do is work hard. The government will certainly support domestic producers. And, of course, these goals can only be attained in cooperation with professional associations and industry unions.

Unique prospects are thus opening up before the Russian Agrarian Movement, which plays a consolidating role among various agricultural producers, business leaders, and academics – in short, among the nearly 38 million Russians living and working in rural areas. Today, we will re-elect the management bodies of our organisation. I am confident that we will choose the most deserving, competent, and knowledgeable people, as well as good professionals. The proposals that you make today will certainly contribute to attaining the goals I have just laid out for all of us.

I would like to thank the city of Rostov-on-Don for its hospitality and assistance in organising this congress. I hope that your work here will be highly rewarding.